Europe drives Tata Steel performance; net up 14%

Tata Steel, the world’s sixth largest producer, reported consolidated net sales of Rs 36,410 crore in the December quarter, up 14 per cent from the corresponding period last year, led by 5.6 per cent growth in deliveries at 3.2 million tonnes (mt) in Europe and 9.5 per cent growth to 2.07 mt at the India operations.

Higher cost efficiency in Europe helped the company post strong operating performance. Ebitda (earnings before interest, taxes, depreciation and amortisation) increased to £87 million (Rs 3,900 crore), compared to £55 mn in the September quarter and a loss of £50 mn in the corresponding period last year.

In the first nine months of FY14, the company launched 21 value added products in the European market. These have helped the company report 14 per cent year-on-year increase in sales of such products.

“A better product mix has helped the company report better margins,” the company said.